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Federal Reserve to increase interest rates by 75 basis points

federalreserve.gov

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Re: Federal Reserve to increase interest rates by 75 basis points

#251

Post by CoffeeCollector »

d4mi3n wrote: post #95
CoffeeCollector wrote: post #74

Earlier quoted context omitted.

You are getting down voted for telling the truth. Every inflation discussion starts with the supply side economics or companies raising taxes, but inflation only happens in reality because of government spending, borrowing, and deficit spending.

> but inflation only happens in reality because of government spending, borrowing, and deficit spending. This is incorrect. Note that governments around the world are also experiencing record levels of inflation and each has their own fiscal policy. Inflation is an aggregate economic effect driven by a variety of factors—including but by no means limited to government spending. Other things that contribute to inflati…

Most of your ‘refutation’ is dishonest, Keynesian, MMT nonsense. Fiat doesn’t get introduced unless printed or borrowed by the government. Full stop. Companies raising prices is not inflation and conflating that with government monetary policy is outright disinformation.

Re: Federal Reserve to increase interest rates by 75 basis points

#252

Post by ClumsyPilot »

beiller wrote: post #217
pbk1 wrote: post #103

Earlier quoted context omitted.

> if housing is far and away the best investment you can possibly make, both in the short, medium, and long-term. citation needed? genuinely curious - are there studies about long-term returns from housing vs. other asset classes (namely public equities)?

There is a lot of research suggesting that housing is not the best investment compared to equities. Many people conflate leverage with real-estate investment. If you apply the same leverage to equities they will far and away outperform real-estate. Try S and P 500 calculator with dividend reinvestment to get an idea. In my opinion, if real-estate out-paces equities or other forms of investment, then we barrel towards…

> There is a lot of research suggesting that housing is not the best investment compared to equities.

And yet most retail investors loose money. My family managed to lose money both by investing in bonds and by investing in index fund - quite of an achievement. They never lost money in real estate.

The reason should be obvious -> most people understand what is a house and how it works, they understand the city they live in and good VS bad areas. Most people don't udnerstand the stock market.

Re: Federal Reserve to increase interest rates by 75 basis points

#253

Post by CoffeeCollector »

sandworm101 wrote: post #79
CoffeeCollector wrote: post #74

Earlier quoted context omitted.

You are getting down voted for telling the truth. Every inflation discussion starts with the supply side economics or companies raising taxes, but inflation only happens in reality because of government spending, borrowing, and deficit spending.

Inflation happens too in markets without governments. Government therefore cannot be the one cause.

What markets exist outside of government authority? No, black and gray markets don’t count because the increased money supplies created by governments will affect the overall amount of money chasing goods in any market.

Re: Federal Reserve to increase interest rates by 75 basis points

#254

Post by lamontcg »

pindab0ter wrote: post #242
lamontcg wrote: post #208

Earlier quoted context omitted.

"Tell me you were too young to remember Alan Greenspan without telling me that" The Fed has always shied away from saying things too bluntly, and preferred to deal with wishy washy code words. If it ever says something bluntly you know they really mean it. Something like "softened" is a deliberately ambiguous phrase designed to acknowledge the reality that they're declining without causing panic, by being uncertain a…

How does an interest increase influence unionization?

Ultimately by creating a recession and rising unemployment and desperation in the working class.

Re: Federal Reserve to increase interest rates by 75 basis points

#255

Post by newaccount2021 »

api wrote: post #182
mjr00 wrote: post #87

Earlier quoted context omitted.

> It's too difficult to curb demand for things like food and housing if the population is growing. It's also difficult (impossible) to curb demand for housing if housing is far and away the best investment you can possibly make, both in the short, medium, and long-term. Unfortunately, so many people in the west have their net worth tied up in their homes that policies directly targeting property values is political s…

> Unfortunately, so many people in the west have their net worth tied up in their homes that policies directly targeting property values is political suicide. I long ago concluded that the only way to escape high housing costs is to leave high cost of living places. No reform large enough to make a real dent is politically feasible, and in some overpriced cities the sheer amount of construction that would be required…

No post body was provided.

Re: Federal Reserve to increase interest rates by 75 basis points

#256

Post by nodesocket »

dragonwriter wrote: post #249
nodesocket wrote: post #10

Now if we can only get states (like California) to stop giving out stimulus payments (they literally calling it inflation stimulus; learn economics 101) and drop student debt forgiveness nonsense. The fed is trying to curb inflation, while politicians are trying to get re-elected at any cost, fighting the fed.

> Now if we can only get states (like California) to stop giving out stimulus payments (they literally calling it inflation stimulus; learn economics 101 California is not giving out anything called stimulus payments. You seem to be referring to the inflation relief tax rebate which is the system that has been adopted to return tax revenue that exceeds the Constitutional cap on state spending (FY 1978-1979 spending a…

You realize the reason California in particular has a budget surplus is because of federal stimulus in addition to their outrageously high tax policies. That aside, why give money straight into people's pocket who will go out and spend it (foolishly) and thus increase inflation? How about, invest in the states infrastructure, address homelessness, work on crime, invest in education, work on wildfires. If after all that, there is still a surplus, give it back in the form of tax cuts. Don't just give everybody free money, most of those people pay little to no tax at all. If you don't pay taxes (or pay very little), you shouldn't get tax surplus money back.

Re: Federal Reserve to increase interest rates by 75 basis points

#257

Post by kelnos »

paulpauper wrote: post #140
mywittyname wrote: post #47

I'm skeptical that interest rate hikes will curb inflation. I'm even skeptical that a recession will curb inflation. We have significant shortages of so many products and services that people rely on and the only way I see the situation improving is if supplies increase, maybe dramatically. It's too difficult to curb demand for things like food and housing if the population is growing. Those are things we just need t…

If prices rise 8% yoy and then 2% the next year, the stated inflation rate is 2% even though the 8% is locked in. So there is both higher price levels yet low inflation. Weird how inflation works.

That 8% will continue to show up on historical charts of inflation over time, and if you ask the question what is $1000 in 2015 dollars, today, the calculation will include the 8% inflation experienced over the past year.

Inflation is a measure of year-over-year price increases. How else would you measure it?

Re: Federal Reserve to increase interest rates by 75 basis points

#258

Post by vorpalhex »

erellsworth wrote: post #225
vorpalhex wrote: post #55

Earlier quoted context omitted.

Inflation hurts labor, not the wealthy. Bill Gates doesn't care if his groceries are 10% more expensive. Inflation is outpacing wage increases so effective wages are actually lower in terms of buying power. Housing is getting more expensive at a faster rate than wages are increasing. If you are pro-labor you want the fed to aggressively raise rates because that makes life harder for business.

Yes, inflation hurts workers. You know what also hurts workers? Low wages. The fed has specifically stated that reducing wages is one of their goals. I'm not against the fed raising rates. But any benefit workers see from such a policy is unintentional.

> The fed has specifically stated that reducing wages is one of their goals.

Citation? I would be surprised for the fed to have such a thing as their goal.

Re: Federal Reserve to increase interest rates by 75 basis points

#259

Post by ClumsyPilot »

option wrote: post #162
mjr00 wrote: post #87

Earlier quoted context omitted.

> It's too difficult to curb demand for things like food and housing if the population is growing. It's also difficult (impossible) to curb demand for housing if housing is far and away the best investment you can possibly make, both in the short, medium, and long-term. Unfortunately, so many people in the west have their net worth tied up in their homes that policies directly targeting property values is political s…

no individual landlords? no corporate landlords? What kind of “landlords” then? Just don’t suggest some type of “communal/socialist” housing. Been there (ussr) - f#*%k that and everything related to it.

> Just don’t suggest some type of “communal/socialist” housing. Been there (ussr) - f#*%k that and everything related to it.

is this the ususal government=Communal=socialist=communist brain bug? They are totally different things!

UK has social housing managed by local government, it's been very succesfull and desirable.

Communal apartments are a type of buildding.

Community housing might is 'normal' housing run by an independant charity, you are not against individual people running charities, are you?

Cohousing is a community of independant houses built around a shared space, that originated in denmark.

Which one are you railing agianst here?

Also why should someone be 'investing' in newbuild Apartments they won't live in, what value does that bring to the economy? They are not contributing anything other than speculation.

Re: Federal Reserve to increase interest rates by 75 basis points

#260

Post by ClumsyPilot »

boppo1 wrote: post #197
pm90 wrote: post #180

Earlier quoted context omitted.

Regrettably, This is what does tend to happen. But its also a failure of society because immigrants are easy targets for scoring political points, despite it being repeatedly shown how beneficial immigration has been to Western econonomies.

Can you support that last claim? Might have been good for the S&P, but I'm not so certain the average joe off the street has seen said benefits. I could swear I recently saw a stat that locally born men in the US have only shared in like 3% of new job growth for the last decade or something like that.

'but I'm not so certain the average joe off the street has seen said benefits'

Since 1975 productivity has grown >200%, but wages didn't. So average Joe has not seen benefits of anything really.

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